China exports first EDC cargoes this year, more likely

02 June 2009 04:01  [Source: ICIS news]

SINGAPORE (ICIS news)--China has exported its first ethylene dichloride (EDC) cargo this year with more overseas sales likely next month on high inventory levels, traders and producers said on Tuesday.

A Chinese vinyls producer had sold 15,000-20,000 tonnes of EDC for June-arrival loading to buyers in northeast Asia at a price equivalent to $400/tonne (€284/tonne) CFR (cost and freight) northeast (NE) Asia, industry sources said.

Low domestic prices and high inventory levels had encouraged the producer into an export position even though China is a net importer of EDC.

The country had not bought any fresh EDC cargoes since prices crossed the $300/tonne CFR NE Asia mark a month ago, traders said.

Market players had earlier speculated that India could be a possible destination for Chinese EDC exports but the ongoing monsoon season had dampened India’s demand for polyvinyl chloride (PVC) and in turn EDC. EDC is used as a feedstock to manufacture PVC.

Traders and producers said they did not rule out the possibility that China would still be able to export more EDC cargoes in July due to its high inventory levels.

($1 = €0.71)

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By: Ng Hun Wei
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